Essentially, a landlord has to hand over deposits to a third party or have an insurance scheme cover it. Landlords will still be able to make deductions for damage. Consequently, in the case of a dispute the third party or insurance company will act as the arbitrator and pay out money owed to tenants.
The Tenancy Deposit Protection Ensures:
- Returned deposits
- Any disputes between tenant and landlord or agent will be easier to resolve
- Landlords or agents who do not protect tenancy deposits will have to pay their tenant back three times the deposit
What is the Tenancy Deposit Process?
First of all, at the beginning of a new tenancy agreement, the tenant pays the deposit to the landlord or agent as usual.
Within 30 days the landlord or agent much give details about the deposit protection, including:
- The contact details of the tenancy deposit scheme;
- The contact details of the landlord or agent;
- How to apply for the release of the deposit;
- Information explaining the purpose of the deposit;
- What to do if there is a dispute about the deposit
- What are Tenancy Deposit Schemes?
- Due to the scheme, Tenants know their deposit is safe
- Furthermore, this encourages tenants and landlords to make a clear agreement from the start on the condition of the property.
The Tenancy Deposit Scheme we use is “Mydeposits.co.uk” (formally known as Tenancy Deposit Solutions Ltd). Hence, it’s a partnership between the National Landlords Association and Hamilton Fraser Insurance and is Government recognised.